Sable Offshore has ended its long-standing challenges by announcing the resumption of oil production from the Santa Ynez field near the shores of Santa Barbara, California. This field includes three platforms: Hindu, Harmony, and Heritage, along with the related infrastructure, and has a production capacity of 10,000 barrels per day.
Challenges in Returning to Production
Oil production at the Santa Ynez field had been halted for an extended period due to multiple issues, including pipeline failures, permits, and safety concerns. In May 2015, the pipeline of Plains All American's Line 901 failed, resulting in a spill of nearly 3,000 barrels of crude oil. This event severely disrupted the production flow from this field to local refineries and halted production.
Read more: National Iranian Gas Company has prioritized energy consumption optimization
ExxonMobil sold the assets of the Santa Ynez field to Sable Offshore for $643 million in 2024. However, the resumption of production faced difficulties due to the need for new permits and legal challenges. In December 2025, the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) classified the intrastate pipelines as international infrastructure at Sable's request and issued a permit to resume operations.
Political and Economic Impacts
With the onset of the energy crisis stemming from tensions between the United States and Iran in February 2026, Chris Wright, the Secretary of Energy, ordered a return to operations on March 13. These decisions faced challenges from the Democratic government of California and turned into a dispute over federal and state powers.
In November 2026, California congressional representatives wrote a letter to Sable Offshore, calling for record-keeping and oversight in the upcoming Congress. This indicates increased scrutiny and the potential reduction of legal support for Sable. Additionally, Sable Offshore hit a record low with a sharp drop in stock to 76 cents on November 9.
Sable announced that after negotiations with new buyers, all four major refineries in the Los Angeles area are now purchasing their crude oil. The company is planning to sell up to 1.3 million barrels of oil to finance its budget expenses for the fourth quarter, which will be between $165 and $175 million.
The quality of the oil is also another challenge for this field. The oil produced at Santa Ynez is heavy and has a high sulfur content, making competition with other heavy oil sources more difficult.
Read more: Drone attacks on the port of Ust-Luga threaten Russia's oil export capacity · Norway faces a shortfall of 1.9 million barrels per day in production until 2040
